There is a USDA (United States Department of Agriculture) pilot loan program that could help tens of thousands of rural homeowners refinance in 19 states including Florida.
The program, which was first announced Feb. 1, 2012. It allows underwater homeowners in rural areas to refinance their homes with lower interest rates, similar to a program President Barack Obama announced earlier this month – although the USDA’s program does not rely on the approval of Congress.
To be eligible for the USDA refinance program, homeowners must have either a direct loan with the USDA or a USDA guarantee on a commercial bank mortgage.
Officials say the new program will cut through red tape normally seen with bank refinancing and save borrowers hundreds of dollars a month. To be eligible, borrowers must have made their mortgage payments on time for 12 consecutive months. There are more than 20,000 borrowers eligible in Florida and some 237,000 nationwide, according to the USDA, all in rural areas.
He said that if more underwater loans are refinanced, then fewer homeowners will face foreclosure.
Under the new pilot program, a homeowner could knock three or four percentage points off their mortgage interest rates if they refinance and appraisals, inspections or credit reports are not required.
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